Publication Date: 1/1/74
    Pages: 2
    Date Entered: 2/22/84
    Title: LIMIT OF ERROR CONCEPTS AND PRINCIPLES OF CALCULATION IN NUCLEAR MATERIALS CONTROL
    January 1974
    U.S. ATOMIC ENERGY COMMISSION
    REGULATORY GUIDE
    DIRECTORATE OF REGULATORY STANDARDS
    REGULATORY GUIDE 5.18
    LIMIT OF ERROR CONCEPTS AND PRINCIPLES
    OF CALCULATION IN NUCLEAR MATERIALS CONTROL
A. INTRODUCTION
    Section 70.51 of Part 70 of Title 10 of the Code of Federal
    Regulations requires certain AEC licensees authorized to possess special
    nuclear material to calculate statistical limits of error as part of
    their material control and accounting procedures for use in assuring
    that special nuclear material in their possession is accounted for.
    This guide identifies concepts, principles, and referenced methods that
    are acceptable to the Regulatory staff for calculating such limits of
    error.
B. DISCUSSION
    Statistical controls are required as an integral part of special
    nuclear materials control and accounting systems to assure that
    licensees of fuel processing and fuel fabrication facilities effectively
    account for the special nuclear material they possess and localize
    losses when they occur. A primary statistical indicator of control is
    the quantity of material unaccounted for, which is the observed
    difference between the amount of material that should be on hand (book
    inventory) and the amount of material determined as physically on hand
    (ending inventory). Another indicator is an observed shipper-receiver
    difference, which results from comparing two independent determinations
    of transferred material. Essential to a comprehensive evaluation of the
    significance of these indicators are statistical techniques using
    associated limits of error for testing whether detected imbalances may
    be attributable to measurement error, biases other than those due to
    measurement, possible diversions, or other factors.
    In the treatment of measurement data, the concept of a systematic
    error is important. A systematic error is said to have occurred when
    all members of a subset of the measured values are shifted in the same
    direction and by the same amount. This shift changes the expected
    values of the measurements, and the effect of the shift can therefore be
    thought of as a bias. When the shift is itself a random variable
    characterized by a mean and variance, various statistical procedures can
    be employed to distinguish the random components due to systematic
    effects from those due to "purely random" effects. When scrutinizing a
    particular measurement procedure, it is imperative to differentiate
    between systematic effects which behave like biases and those which are
    created by random phenomena. In particular, biases do not "propagate"
    in the same way as do random variables.
    Subcommittee N15-3 of the American National Standards Institute
    (ANSI) Standards Committee N15, Methods of Nuclear Materials Control,
    has developed a standard for calculating limits of error. This standard
    is designated ANSI N15.16, "Limit of Error Concepts and Principles of
    Calculation in Nuclear Materials Control." The limit of error is defined
    in 10 CFR Part 70 as the uncertainty component used in constructing a
    95% confidence interval associated with a quantity after any recognized
    bias has been eliminated or its effect accounted for. Regulatory Guide
    5.3, "Statistical Terminology and Notation for Nuclear Materials
    Management," dated February 2, 1973, states that limit of error is
    construed as the uncertainty component used to construct a 95%
    confidence interval and states, in addition, that the uncertainty
    component should include systematic as well as random errors. The new
    ANSI standard N15.16, however, defines limit of error as twice the
    standard deviation of the estimator. This is not consistent with 10 CFR
    Part 70 and Regulatory Guide 5.3 since it does not always result in 95%
    confidence intervals.
C. REGULATORY POSITION
    The concepts, principles, and referenced methods for calculating
    limits of error contained in the final draft of ANSI N15.16, "Limit of
    Error Concepts and Principles of Calculation in Nuclear Materials
    Control,"(1) are generally acceptable to the Regulatory staff for use in
    nuclear material control and accounting procedures, subject to the
    following:
    ----------
    (1) Copies may be obtained from the Institute of Nuclear Materials
    Management, 505 King Ave., Columbus, Ohio 43201, Attn: Mr. H. L. Toy.
    ----------
1. The calculated limits of error defined in Section 3.2 of the
    standard should be based on 95% confidence intervals for the estimator,
    which must consider the effective degrees of freedom associated with the
    estimated variance.
2. Section 4.6 of the standard should be interpreted to mean that
    mistakes and blunders arising from the recording, processing, or
    reporting of measurement data, whenever they are appropriately
    identified, should be excluded from the input to a limit of error
    calculation.
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